The rolling average net profit per month is a method for measuring the average profitability over a specific period of time, considering the last 6 months.

Instead of just looking at a fixed time frame (like January to December), a rolling average continually recalculates the average as new months come in, “rolling” over the period in focus.

**Here’s a simple way to understand it:**

If you want to calculate a 6-month rolling average net profit.

In July, you’d find the average net profit for the previous 6 months, for the period of January to June.

Then, in August, you’d calculate a new average for the previous 6 months from February to July.

Then again, for March to August, and so forth.

With each new month, you’d drop the oldest month from your calculations and consider the most recent 6-month period.